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Collection Appeals Procedure

The Collections Appeals Procedure (CAP) was created by the IRS to allow taxpayers who were subject to a lien, levy or seizure or who were defaulting on their installment agreements to request an appeals conference. This procedure is not one that is frequently employed by the clinic.

Typically, the Collection Due Process (CDP) procedure provides more options for completely resolving tax matters. However, the CAP can be helpful in avoiding the filing of a tax lien. The CAP has several limitations that make this process not as desirable as CDP; one of which is that appeals decisions made through CAP cannot be appealed judicially.

To request a hearing, Form 9423 (Collection Appeals Request) must be filed with the group manager of the collection officer. The group manager will decide whether to try to resolve the situation or to allow for an appeals conference. The Office of Appeals must conduct a conference within two days of receiving the case. The case must be resolved and closed within five business days. Collection activity is postponed while the Office of Appeals is handling the case. Both the taxpayer and collections will be notified by the office of its decision.